SEC issues temporary rules allowing mutual funds to borrow funds from affiliates and to make collateralized loans

The current outbreak of coronavirus disease 2019 (COVID-19) has disrupted activities around the world. In light of the current situation, we are issuing this Order providing exemptions from certain requirements of the Investment Company Act. The exemptions provide additional flexibility for (1) registered open-end management investment companies other than money market funds (“open-end funds”) and (2) insurance company separate accounts registered as unit investment trusts (“separate accounts”) to obtain short-term funding.

The full SEC order is available at https://www.sec.gov/rules/other/2020/ic-33821.pdf

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